Compelo Banking - Latest industry news and analysis is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Heartland Financial agrees to buy Heritage Bank

A diversified financial services company Heartland Financial USA has inked a definitive agreement to acquire Phoenix-based commercial bank, Heritage Bank, National Association, in an all-cash transaction of $16m.

According to the terms of the deal, the purchase price represents a premium of nearly 1.24 times total equity and total deposits of 3.54%.

Pending regulatory approval and customary closing conditions, the deal is expected is complete on or before 14 December 2012.

Until the completion of merger with Heartland’s Arizona Bank & Trust subsidiary, which is expected during the first quarter of 2013, the acquirer will manage Heritage Bank as a separate charter.

Heartland president and CEO Lynn Fuller said the two branch offices of the acquired bank are ideal fit for Arizona Bank & Trust locations in Tempe and on Camelback Road in Phoenix.

As of 30 June 2012, Heritage had nearly $107m in assets, loans of $72m and deposits of $84m and operates as a subsidiary of Ameri-National of Overland Park, Kansas, US.

Stifel Nicolaus Weisel and Hovde Group Financial served as financial advisors to Heartland and Heritage Bank respectively.